This week’s Sentiment Survey special question asked AAII members what influence third-quarter earnings had on their outlook for stock prices. Responses were mixed. The largest single group of respondents (22%) indicate that their outlooks have not changed following the latest earnings announcements. About 16% describe earnings as reinforcing their bullish outlook. Nearly the same proportion of respondents, 15%, are paying more attention to 2019 earnings. Many of these respondents indicate concern about a possible slowdown in growth or an outright decline. Other respondents point to the trade war and slowing global growth (10%) or the pace of rate hikes and inflation (also 10%).

Here is a sampling of the responses:

“I am optimistic at present, though I am wary of inflation and less earnings growth next year.”

“Little influence. The market is being driven by other factors, especially trade.”

“Not much. The market seems fixated on the Fed and tariffs.”

“Positive and encouraging me to buy on dips.”

“The bump from the tax cut is over, and comparisons will become more difficult going forward.”